Whitehall officials have begun “serious work” on the UK staying in a permanent EU customs union as a route to rescuing the Brexit deal, despite Theresa May ruling out the move, The Independent can reveal.

Preparations are underway at a high level, amid a belief the beleaguered prime minister will be forced to offer the potentially crucial compromise to Labour.

Ms May has repeatedly rejected a customs union – fearing a further revolt by anti-EU Tories – but some cabinet ministers are pushing her to accept that the red line will have to be dropped if her deal is to be rescued.

They believe it could tempt scores of Labour MPs to back the deal when it returns to the Commons, even if Jeremy Corbyn himself still refuses to drop his opposition.

Now a well-placed Whitehall source has told The Independent: “There is serious work going on about a customs union. We need to be prepared, so we are ready if the politics moves in that direction.”

We aren't there yet, but May is fast running out of options with No Deal as a non-starter. Corbyn smelt blood and agreed to meet, putting a permanent customs union forward as the Labour red line needing to be met to reach some form of agreement and sideline the Tory ERG. Brilliant if it comes off as we are talking BINO (Brexit in name only). I look forward to seeing if other goodies like freedom of movement are in the package.

Following discussions with “all sides”, Mujtaba Rahman of Eurasia Group has put forward a revised basecase which puts a deal over a permanent Customs Union way ahead of the alternatives at 55 per cent.

Mr Rahman said: “For the first time since Brexit, it is possible to see the emergence of the ‘sustainable Commons majority’ that the EU is seeking taking shape over a permanent Customs Union.”

Support from Labour MPs would be crucial to this, he said, “to which Jeremy Corbyn would turn a blind eye, allowing him to maintain his ‘constructive ambiguity’ that avoids alienating Leave or Remain voters”.

The probability of another referendum now stands at a slim 20 per cent, according to Mr Rahman, though this is more likely than a general election (15 per cent) or no-deal (10 per cent).

Cannydc wrote:Whitehall officials have begun “serious work” on the UK staying in a permanent EU customs union as a route to rescuing the Brexit deal, despite Theresa May ruling out the move, The Independent can reveal.

Preparations are underway at a high level, amid a belief the beleaguered prime minister will be forced to offer the potentially crucial compromise to Labour.

Ms May has repeatedly rejected a customs union – fearing a further revolt by anti-EU Tories – but some cabinet ministers are pushing her to accept that the red line will have to be dropped if her deal is to be rescued.

They believe it could tempt scores of Labour MPs to back the deal when it returns to the Commons, even if Jeremy Corbyn himself still refuses to drop his opposition.

Now a well-placed Whitehall source has told The Independent: “There is serious work going on about a customs union. We need to be prepared, so we are ready if the politics moves in that direction.”

We aren't there yet, but May is fast running out of options with No Deal as a non-starter. Corbyn smelt blood and agreed to meet, putting a permanent customs union forward as the Labour red line needing to be met to reach some form of agreement and sideline the Tory ERG. Brilliant if it comes off as we are talking BINO (Brexit in name only). I look forward to seeing if other goodies like freedom of movement are in the package.

552 times he voted against his own party, cannot be trusted even members of his own party say that. You are just blinkered and brainwashed about Labour. Show us your KGB/GRU membership card. Roll on Brexit Roll on Brexit. Roll on Brexit.